 |  | | Young, growing families with limited income and a high insurance need represent one situation where term life insurance works very well |
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Term life insurance, as the name suggests, provides life insurance only for a limited period of time, or “term.” Other types of policies, such as whole life, universal life or variable life, are considered to be “permanent insurance” and are designed to provide protection for the entire life of the insured. Additionally, term insurance provides only “pure” insurance protection and does not have the saving feature typically found in most permanent (“cash-value”) life insurance policies.Term insurance might be compared to an automobile insurance policy. While the auto policy is in force, the insured enjoys the protection against loss from an auto accident. If no accident happens, no benefits are paid under the policy. At the end of the period covered by the policy, there is no refund of the premiums paid. Term insurance works in much the same way. | 
